The USDCNH currency pair seems to be forming a large horizontal correction wave ④ of the primary degree. This takes the form of an intermediate double three (W)-(X)-(Y).
Perhaps, at the time of writing, we are in the final part of the intermediate intervening wave (X). Only the second half of this wave is visible in the chart. Most likely, the wave (X) takes the form of a triple zigzag W-X-Y-X-Z.
Wave Z could be a minute ⓐ-ⓑ-ⓒ zigzag. Thus, in the near future, a downward price movement in the impulse minute wave ⓒ is likely.
The market is likely to fall to the 6.275 area. At that level, wave Z will be at 76.4% along the Fibonacci lines of actionary wave Y.
Let’s consider an alternative scenario, as seen above. According to this, the intermediate intervening wave (X) could already be fully complete.
There is a possibility that the intermediate wave (Y) will take the form of a double zigzag W-X-Y, as shown in the chart.
At the time of writing, a minor wave W is being constructed, taking the form of a minute standard zigzag. This could reach the target of 6.529.
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